Final answer:
The scenario where a bank files a lawsuit against a company for misleading financial statements audited by a CPA is covered by the Securities Exchange Act of 1934, not the Securities Act of 1933 or common law, making B) Act of 1934 the correct answer.
Step-by-step explanation:
In the scenario provided, where a bank that lent money to a company is filing a lawsuit due to misleading financial statements that were audited by a CPA, the correct act relevant to this situation would be the Securities Exchange Act of 1934 (Act of 1934). The Securities Act of 1933 primarily deals with the initial issuance of securities to the public, often referred to as the "truth in securities" law, which aims to make sure investors receive significant information about securities being offered. The Securities Exchange Act of 1934, on the other hand, governs the trading, buying, and selling of securities post-issuance, including the provision against fraudulent activities in relation to securities transactions. Therefore, it is most applicable for cases involving misleading financial statements by publicly traded companies post their initial offering.
Common law fraud claims may also be relevant, depending on the specific circumstances of the case and the relationships between the parties involved. However, statutory claims under the Securities Exchange Act of 1934 often provide the basis for federal securities fraud lawsuits. Hence the most fitting answer to the student's question would be B) Act of 1934.